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Do Personal Group Holdings' (LON:PGH) Earnings Warrant Your Attention?
Do Personal Group Holdings' (LON:PGH) Earnings Warrant Your Attention?

Yahoo

time15-05-2025

  • Business
  • Yahoo

Do Personal Group Holdings' (LON:PGH) Earnings Warrant Your Attention?

Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks' without any revenue, let alone profit. But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.' While a well funded company may sustain losses for years, it will need to generate a profit eventually, or else investors will move on and the company will wither away. So if this idea of high risk and high reward doesn't suit, you might be more interested in profitable, growing companies, like Personal Group Holdings (LON:PGH). Now this is not to say that the company presents the best investment opportunity around, but profitability is a key component to success in business. We've discovered 1 warning sign about Personal Group Holdings. View them for free. If a company can keep growing earnings per share (EPS) long enough, its share price should eventually follow. So it makes sense that experienced investors pay close attention to company EPS when undertaking investment research. We can see that in the last three years Personal Group Holdings grew its EPS by 15% per year. That's a pretty good rate, if the company can sustain it. Top-line growth is a great indicator that growth is sustainable, and combined with a high earnings before interest and taxation (EBIT) margin, it's a great way for a company to maintain a competitive advantage in the market. EBIT margins for Personal Group Holdings remained fairly unchanged over the last year, however the company should be pleased to report its revenue growth for the period of 13% to UK£44m. That's encouraging news for the company! In the chart below, you can see how the company has grown earnings and revenue, over time. To see the actual numbers, click on the chart. See our latest analysis for Personal Group Holdings Personal Group Holdings isn't a huge company, given its market capitalisation of UK£89m. That makes it extra important to check on its balance sheet strength. It's said that there's no smoke without fire. For investors, insider buying is often the smoke that indicates which stocks could set the market alight. That's because insider buying often indicates that those closest to the company have confidence that the share price will perform well. Of course, we can never be sure what insiders are thinking, we can only judge their actions. A great takeaway for shareholders is that company insiders within Personal Group Holdings have collectively spent UK£25k acquiring shares in the company. While this isn't much, we also note an absence of sales. We also note that it was the company insider, Sander Gerber, who made the biggest single acquisition, paying UK£20k for shares at about UK£2.00 each. And the insider buying isn't the only sign of alignment between shareholders and the board, since Personal Group Holdings insiders own more than a third of the company. In fact, they own 37% of the shares, making insiders a very influential shareholder group. Shareholders and speculators should be reassured by this kind of alignment, as it suggests the business will be run for the benefit of shareholders. With that sort of holding, insiders have about UK£33m riding on the stock, at current prices. That's nothing to sneeze at! One positive for Personal Group Holdings is that it is growing EPS. That's nice to see. On top of that, we've seen insiders buying shares even though they already own plenty. That should do plenty in prompting budding investors to undertake a bit more research - or even adding the company to their watchlists. It's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Personal Group Holdings , and understanding it should be part of your investment process. The good news is that Personal Group Holdings is not the only stock with insider buying. Here's a list of small cap, undervalued companies in GB with insider buying in the last three months! Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio

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